Nazlawi business college

PMP
Chapter one
 Introduction

• Project management is not new. It has been in

use for hundreds of years. Examples of project
outcomes include:
– Pyramids of Giza,
– Olympic games,
– Great Wall of China,
– Taj Mahal,
•
FOUNDATIONAL ELEMENTS
The PMBOK® definition of a project is “a temporary endeavor undertaken to create a unique
product, service or result.” That means a project has a definite beginning and end. It can end
by reaching its goals or get terminated. Temporary is not necessarily short. Projects can last
for years. The project’s outputs, meanwhile, are not necessarily temporary. They can last for
hundreds of years.
• A project is a temporary endeavor undertaken to create a unique product, service, or result.
• Project management is the application of knowledge, skills, tools, and techniques to project
activities to meet the project requirements. Project management is accomplished through
the appropriate application and integration of the project management processes identified
for the project
• Project Initiation Context: Organizational leaders initiate projects in response to factors
acting upon their organizations. There are four fundamental categories for these factors,
which illustrate the context of a project
– Meet regulatory, legal, or social requirements;
– Satisfy stakeholder requests or needs;
– Implement or change business or technological strategies
– Create, improve, or fix products, processes, or services.
 RELATIONSHIP OF PROJECT, PROGRAM, PORTFOLIO,
AND OPERATIONS MANAGEMENT
• Business value in projects refers to the benefit that the results of a specific project
provide to its stakeholders. The benefit from projects may be tangible(Monetary
assets), intangible(Goodwill), or both.
• Program is defined as a group of related projects, subsidiary programs, and program
activities managed in a coordinated manner to obtain benefits not available from
managing them individually. Programs are not large projects. A very large project
may be referred to as a megaproject. As a guideline, megaprojects cost US$1billion
or more, affect 1 million or more people, and run for years.
• Program and project management focus on doing programs and projects the “right”
way. And Portfolio management focuses on doing the “right” programs and projects.

• Program management is defined as the application of knowledge, skills, and

principles to a program to achieve the program objectives and to obtain benefits and
control not available by managing program components individually.
 Meet Regulatory, Satisfy Stakeholder
Legal, or Social Requests or Needs
Requirements

project

Create, Improve,
Implement or
or Fix Products,
Change Business
Processes, or
or Technological
Services
Strategies
 3

• Portfolio is defined as projects, programs, subsidiary

portfolios, and operations managed as a group to achieve
strategic objectives. Portfolio management is defined as the
centralized management of one or more portfolios to achieve
strategic objectives. The programs or projects of the portfolio
may not necessarily be interdependent or directly related.
• Operations management is an area that is outside the scope
of formal project management which is concerned with the
ongoing production of goods and/or services. However,
operations & scope might intersect at some points .
 ORGANIZATIONAL PROJECT MANAGEMENT (OPM) AND
STRATEGIES

• Organizational Project Management (OPM) is

defined as a framework in which portfolio,
program, and project management are integrated
with organizational enablers in order to achieve
strategic objectives. The purpose of OPM is to
ensure that the organization undertakes the right
projects and allocates critical resources
appropriately and ensure that all levels in the
organization understand the strategic vision.
 PROJECT AND DEVELOPMENT LIFE CYCLES
• Project life cycle is the series of phases that a project passes through from its start to its completion. It
provides the basic framework for managing the project. The phases may be sequential, iterative, or
overlapping
• Project life cycles can be predictive or adaptive, within a project life cycle, there are generally one or
more phases that are associated with the development of the product, service, or result. These are
called a development life cycle (they can be predictive, iterative, incremental, adaptive, or a hybrid
model).
– Predictive life cycle (Waterfall): the project scope, time, and cost are determined in the early
phases of the life
– Iterative life cycle: project scope is generally determined early in the project life cycle, but time
and cost estimates are routinely modified
– Incremental life cycle deliverable is produced through a series of iterations that successively add
functionality within a predetermined time frame and it’s considered complete only after the final
iteration
– Adaptive life cycles are agile, iterative, or incremental. The detailed scope is defined and approved
before the start of an iteration. Adaptive life cycles are also referred to as agile or change-driven
life cycles
– Hybrid life cycle is a combination of a predictive and an adaptive life cycle. Those elements of the
project that are well known or have fixed requirements follow a predictive development life cycle,
and those elements that are still evolving follow an adaptive development life cycle

• Project life cycles are independent of product life cycles, which may be produced by a project. A product
life cycle is the series of phases that represent the evolution of a product, from concept through
delivery, growth, maturity, and to retirement.
 PROJECT PHASE & PHASE GATE
• Project Phase: Collection of logically related
project activities that culminates in the completion
of one or more deliverables. The phases in a life
cycle can be described by a variety of attributes
• Phase gate: is held at the end of a phase. The
project’s performance and progress are compared
to project and business documents. Also Called
(phase review, stage gate, kill point, and phase
entrance or phase exit)
 PROJECT MANAGEMENT PROCESSES
• The project life cycle is managed by executing a series of project
management activities known as project management processes.
Every project management process produces one or more outputs
from one or more inputs by using appropriate project management
tools and techniques. The output can be a deliverable or an outcome.
Outcomes are an end result of a process. Project management
processes apply globally across industries.
• Project management processes are logically linked by the outputs they
produce. Processes may contain overlapping activities that occur
throughout the project. The output of one process generally results in
either:
– An input to another process, or
– A deliverable of the project or project phase.
 2
• The number of process iterations and interactions between
processes varies based on the needs of the project. Processes
generally fall into one of three categories:
– Processes used once or at predefined points in the project: (Develop
Project Charter, Develop Project Management Plan, Close
Project/Phase, Plan Scope Management, Collect Requirements, Create
WBS, Plan Schedule Management, Plan Cost Management, Determine
Budget, Plan Quality Management, Plan Resource Management, Plan
Risk Management, Plan Procurement Management)
– Processes that are performed periodically as needed: (Validate Scope,
Estimate Costs, Estimate Activity Resources, Acquire Resources, Plan
Communication Management, Conduct Procurement, Identify
Stakeholders, Plan Stakeholder Management)
– Processes that are performed continuously throughout the project: (All
other remaining process such as define activities)
PROJECT MANAGEMENT PROCESS GROUPS

• A Project Management Process Group is a logical

grouping of project management processes to
achieve specific project objectives. Process Groups
are independent of project phases. Project
management processes are grouped into the
following five Project Management Process Groups:
• Project Management is divided into 5 Process
Groups (Initiating, Planning, Executing, Monitoring
& Controlling and Closing Process Group)
 2
• Initiating Process Group. Those processes performed to define a new project
or a new phase of an existing project by obtaining authorization to start the
project or phase.
• Planning Process Group. Those processes required to establish the scope of
the project, refine the objectives, and define the course of action required to
attain the objectives that the project was undertaken to achieve.
• Executing Process Group. Those processes performed to complete the work
defined in the project management plan to satisfy the project requirements.
• Monitoring and Controlling Process Group. Those processes required to
track, review, and regulate the progress and performance of the project;
identify any areas in which changes to the plan are required; and initiate the
corresponding changes.
• Closing Process Group. Those processes performed to formally complete or
close the project, phase, or contract.
 PROJECT MANAGEMENT KNOWLEDGE AREAS

• In addition to Process Groups, processes are also

categorized by Knowledge Areas. A Knowledge Area
is an identified area of project management defined
by its knowledge requirements and described in
terms of its component processes, practices, inputs,
outputs, tools, and techniques.
• Project Management Divided into 10 Knowledge
Areas (Integration, Scope, Schedule, Cost, Quality,
Resource, Communication, Risk, Procurement and
Stakeholder Management)
• Project Integration Management. Includes the processes and activities to identify, define, combine, unify, and
coordinate the various processes and project management activities within the Project Management Process
Groups.
• Project Scope Management. Includes the processes required to ensure the project includes all the work
required, and only the work required, to complete the project successfully.
• Project Schedule Management. Includes the processes required to manage the timely completion of the project.
• Project Cost Management. Includes the processes involved in planning, estimating, budgeting, financing,
funding, managing, and controlling costs so the project can be completed within the approved budget.
• Project Quality Management. Includes the processes for incorporating the organization’s quality policy
regarding planning, managing, and controlling project and product quality requirements, in order to meet
stakeholders’ expectations.
• Project Resource Management. Includes the processes to identify, acquire, and manage the resources needed
for the successful completion of the project.
• Project Communications Management. Includes the processes required to ensure timely and appropriate
planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and ultimate
disposition of project information.
• Project Risk Management. Includes the processes of conducting risk management planning, identification,
analysis, response planning, response implementation, and monitoring risk on a project.
• Project Procurement Management. Includes the processes necessary to purchase or acquire products, services,
or results needed from outside the project team.
• Project Stakeholder Management. Includes the processes required to identify the people, groups, or
organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their
impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in
project decisions and execution.
 PROJECT MANAGEMENT DATA AND
INFORMATION
• Project data are regularly collected and analyzed throughout the project life cycle.
The following definitions identify key terminology regarding project data and
information
• Work performance data: The raw observations and measurements identified during
activities performed to carry out the project work, such as (Percent of finished work,
Start and finish dates, number of change requests, actual costs and durations). Project
data are usually recorded in a Project Management Information System (PMIS)
• Work performance information: Performance data collected from various controlling
processes, analyzed in context and integrated based on relationships across areas,
such as (status of deliverables, implementation status for change requests, and
forecast estimates to complete)
• Work performance reports. The physical or electronic representation of work
performance information compiled in project documents, which is intended to
generate decisions or raise issues, actions, or awareness, such as (status reports,
memos, justifications, information notes, electronic dashboards, recommendations,
and updates)
PROJECT MANAGEMENT BUSINESS DOCUMENTS
• Methodology is a system of practices, techniques, procedures, and rules
used by those who work in a discipline which project manager apply in
their management. (PMBOK is NOT a methodology, but a recommended
reference for tailoring). Tailoring is necessary because each project is
unique.
• Project Management Business Documents
– 1- Project business case ; A documented economic feasibility study
used to establish the validity of the benefits of a selected component
lacking sufficient definition and that is used as a basis for the
authorization of further project management activities.
– 2- Project benefits management plan ; The documented explanation
defining the processes for creating, maximizing, and sustaining the
benefits provided by a project.
• Project sponsor is generally accountable for the development and
maintenance of the project business case document. The project manager is
responsible for providing recommendations and oversight
• Project managers should appropriately tailor the noted project management
documents, In some organizations, the business case and benefits
management plan are maintained at the program level
 PROJECT BUSINESS CASE
• Business case is a documented economic feasibility study used
to establish the validity of the benefits of a selected
component lacking sufficient definition and that is used as a
basis for the authorization of further project management
activities it lists the objectives and reasons for project initiation.
• It helps measure the project success at the end of the project
against the project objectives The business case may be used
before the project initiation and may result in a go/no-go
decision for the project.
• A business case may include (Business Needs, Analysis of the
situation (Required, Desired, Optional), Evaluation
 PROJECT BENEFITS MANAGEMENT PLAN
• Project benefits management plan is the document that describes how and
when the benefits of the project will be delivered, and describes the
mechanisms that should be in place to measure those benefits.
Development and maintenance of the project benefits management plan is
an iterative activity .
• Development of the benefits management plan begins early in the project life
cycle with the definition of the target benefits to be realized and it may
include (Target benefits, Strategic alignment, Timeframe for realizing benefits,
benefits owner, metrics, assumptions, risks)
• Developing the benefits management plan makes use of the data and
information documented in the business case and needs assessment.
• It is possible for a project to be successful from a scope/schedule/budget
viewpoint, and to be unsuccessful from a business viewpoint. This can occur
when there is a change in the business needs or the market environment
• The benefits management plan describes key elements of the benefits and may
include but is not limited to documenting the following:
• Target benefits (e.g., the expected tangible and intangible value to be gained by the
implementation of the project; financial value is expressed as net present value);
• Strategic alignment (e.g., how well the project benefits align to the business
strategies of the organization);
• Timeframe for realizing benefits (e.g., benefits by phase, short-term, long-term, and
ongoing);
• Benefits owner (e.g., the accountable person to monitor, record, and report realized
benefits throughout the timeframe established in the plan);
• Metrics (e.g., the measures to be used to show benefits realized, direct measures,
and indirect measures);
• Assumptions (e.g., factors expected to be in place or to be in evidence); and
• Risks (e.g., risks for realization of benefits).
 PROJECT CHARTER AND PROJECT
MANAGEMENT PLAN
• The project charter is defined as a document
issued by the project sponsor that formally
authorizes the existence of a project and
provides the project manager with the
authority to apply organizational resources to
project activities.
• The project management plan is defined as the
document that describes how the project will
be executed, monitored, and controlled.
 PROJECT SUCCESS MEASURES
• One of the most common challenges in project management is
determining whether or not a project is successful.
• Traditionally, the project management metrics of time, cost, scope, and
quality have been the most important factors in defining the success of a
project. More recently, practitioners and scholars have determined that
project success should also be measured with consideration toward
achievement of the project objectives.
• Project stakeholders may have different ideas as to what the successful
completion of a project will look like and which factors are the most
important. It is critical to clearly document the project objectives and to
select objectives that are measurable.
• The project team needs to be able to assess the project situation,
balance the demands, and maintain proactive communication with
stakeholders in order to deliver a successful project.